8-K

                      SECURITIES AND EXCHANGE COMMISSION

                            WASHINGTON, D.C.  20549
                              ---------------------

                                   Form 8-K

                                CURRENT REPORT
                      PURSUANT TO SECTION 13 OR 15(d) OF
                      THE SECURITIES EXCHANGE ACT OF 1934


       Date of Report (Date of earliest event reported):  March 24, 1998


                          IWERKS ENTERTAINMENT, INC.
              (Exact Name of Registrant as Specified in Charter)


         Delaware              0-22558               95-4439361
(State or Other Jurisdiction  (Commission          (IRS Employer
     of Incorporation)        File Number)       Identification No.)


                           4540 West Valerio Street
                        Burbank, California  91505-1045
                   (Address of Principal Executive Offices)

                                (818) 841-7766
                        (Registrant's Telephone Number)




ITEM 5.  OTHER EVENTS

     Reference is made to the press release of Registrant, issued on March 24,
1998, which contain information meeting the requirements of this Item 5, and
which is incorporated herein by this reference.  A copy of this press release
is attached to this Form 8-K as Exhibit 99.1.


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                                  SIGNATURES


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


March 24, 1998                     IWERKS ENTERTAINMENT, INC.



                              By:   /S/ BRUCE HINCKLEY
                                   -------------------
                                   Bruce Hinckley
                                   Chief Financial Officer


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                                 EXHIBIT INDEX

EXHIBITS                                                       PAGE NUMBER

99.1      Press Release dated March 23, 1998.

EX-99.1

BURBANK, CA. - (ENTERTAINMENT WIRE) - March 24, 1998 - Iwerks Entertainment 
Inc.(NASDAQ:IWRK-news) announced that it has signed Saban Entertainment to 
sponsor one of its Reactor Touring Simulation Theaters for a three-month 
promotional tour.

A customized Iwerks Reactor will be used as a featured attraction to promote 
the new season on Fox Kids of the "Power Rangers in Space" television series.

The agreement with Saban Entertainment, producer and licensor of the Power 
Rangers franchise, will drive awareness of the television series "Power 
Rangers in Space" and the new Power Rangers' toy line which is manufactured 
by Bandai.

The Reactor Tour, which kicked off in New York on Feb. 6th at this year's 
International Toy Fair, touts a customized ride which utilizes existing 
space-themed footage from Iwerks as well as footage from the new "Power 
Rangers in Space" television series.

Additionally, the Reactor will tour for Saban Entertainment to 14 Wal-Mart
locations nationwide through May.  In conjunction with this tour, Fox Kids 
Network is holding a sweepstakes for viewers to enter to win a party with 
the Power Rangers in Space Reactor in their neighborhood for a day.  The on-
air promotion ran from Feb. 7-21, 1998.

"Our Reactors have always been a huge draw among children and it is exciting 
now to have one specifically associated with a great children's brand, 
especially a brand as popular as the Power Rangers," said Charles Goldwater,
chairman and chief executive officer of Iwerks.

George Leon, vice president, promotions, Saban Entertainment said: "We really
wanted to bring home to kids the space element of the new television series 
and let them experience the empowerment along with their superheroes.  
Because of this partnership with Iwerks, we are able to deliver a one-of-a-
kind, fantastic experience."

The Iwerks Reactor Touring Ride Simulation Theaters are available for 
sponsored tours and events.  Other sponsors have included AT&T and Mattel.  
In addition to producing customized ride simulation films to fit a 
promotional theme, a variety of high-quality simulation films are available 
for use with the Reactors.

Joanne Allor, director of event marketing for Iwerks Entertainment said: This
new sponsored tour is an excellent example of how our Reactors can be 
customized to fit the theme of any promotion.  Our Reactors allow a company 
to promote its image and product through a sponsored tour and give customers 
the opportunity to experience the thrill of our ride simulation capabilities 
from various locations."

Iwerks Entertainment, Inc. is one of the world's leading providers and 
distributors of film-based attractions such as 2-D and 3-D ride simulation, 
2-D and 3-D giant screen theaters, 360-degree video dance clubs and other 
immersive attractions.

Serving prestigious entertainment, information and marketing providers, more 
than 250 Iwerks attractions can be found worldwide at location based 
entertainment centers, amusement parks,

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family entertainment centers, shopping centers, casinos, resorts, nightclubs,
restaurants, museums, fairs, festivals and more.  Visit Iwerks Entertainment 
on the Internet at WWW.IWERKS.COM.

FORWARD-LOOKING STATEMENT DISCLOSURE

Note:  With the exception of the historical information, the matters discussed
above include forward-looking statements that involve risks and uncertainties.
Factors that could cause actual results to differ materially from those 
indicated in the forward-looking statements are discussed in the company's 
filings with the Securities and Exchange Commission.

Contact:

     Bozwell Sawyer Miller Group
     Krista Grossman, 310-442-2516


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